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Bronx bankruptcy lawyer blogs on American Airlines emerging from bankruptcy

American Airlines, which has merged with US Airways, has gotten the final clearance to take off from bankruptcy protection according to the New York Times in a September 12, 2013 news article

The company has been under bankruptcy protection for about two years. The bankruptcy court in Manhattan has given American approval to finish the bankruptcy. The airline cut costs, including labor costs, during these two years, while still operating. This is known as “reorganization,” When a company files for a Chapter 11 bankruptcy, they must restructure their company so that it can stay afloat financially.

In order to stay profitable and successful, the airline merged with US Airways. Company officials say creditors and labor unions supported this move. The officials say that this move was necessary to compete with other large airlines, such as Delta Air Lines and United Airlines, so that the company would not fall back into bankruptcy again.

The Justice Department has challenged this merger, in a surprise action, citing anti-trust and competition concerns. It is hoped that the airline will be able to work out these issues, as the bankruptcy judgment is still contingent on a positive settlement with the Justice Department.

If you are behind on your bills or your mortgage payments or if you are buried under debt, then you may wish to consider filing bankruptcy. Jayson Lutzky is an experienced personal bankruptcy lawyer. He has 30 years of experience as a New York attorney and has helped thousands of satisfied clients over the years. He offers free in person initial consultations, so call 718-329-9500 to set up an appointment. Visit www.MyNewYorkCityLawyer.com for further information.

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